On Wednesday, US tech giant $Amazon (AMZN.US)$The stock price soared nearly 4% at the close, pushing its market cap above $2 trillion for the first time. Google A broke through this barrier in April, while the market caps of Nvidia, Microsoft, and Apple are now all over $3 trillion.

Thanks to AI driving its cloud computing business to accelerate its growth trend, Amazon's stock price has risen more than 27% so far this year, while the tech-heavy Nasdaq index has risen about 18%.

Investors have also welcomed Amazon's recent cost-cutting measures, which have driven the company's profit growth in recent quarters. Amazon CEO Andy Jassy has been working to control the company's expenses for years, including large-scale layoffs that have affected more than 27,000 Amazon employees.

In the first quarter earnings report, nearly all of the company's departments reported revenue growth that exceeded Wall Street's expectations, with revenue doubling year-over-year to reach a new high of $15.3 billion, 36% higher than analysts' expectations. Amazon executives also discussed the strong demand for generative AI workloads from AWS cloud business.

Recently, as investors' pursuit of AI reached a frenzy, large-cap tech stocks have reached historic highs one after another. AI leader Nvidia has become the biggest beneficiary, with its market cap skyrocketing from $2 trillion to $3 trillion in just over three months.

Amazon's market cap reached $1 trillion in 2020 and took more than four years to finally cross the milestone of $2 trillion.

So far, in this tech race, Google, Microsoft, and OpenAI have won more attention, while Amazon and Apple have lagged behind, which is also the main reason for Amazon's "relatively poor" stock price.

It is reported that Amazon is planning a major overhaul of its voice assistant Alexa, which has been losing money for a decade, and will incorporate AI chatbots for the first major reform since its launch in 2014.

In addition, Amazon has also invested in AI start-up Anthropic and robot company Figure, hoping to keep up with its competitors in the generative AI field.

Morningstar Investment Service analyst Dan Romanoff believes that part of the reason for Amazon's good stock performance in the past six to nine months is due to overselling at the end of 2022.

Of course, the optimistic mood to maintain the resilience of the US economy, as well as expectations that the Fed may cut interest rates, have also driven the overall market trend.

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